Cost of running a home rises by 12% a year
Tuesday, April 24th, 2007Data analysis by Sainsbury’s Bank home insurance has put home cost inflation at 12% per year. Sainsbury’s experts reckon that householders now estimate that running a home in the UK costs around £11k; nearly £1200 higher than it was only three years ago. In persepective, this amounts to a rise in running costs of about £3.28 per day.
However, Sainsbury’s believe that homeowners can dramatically reduce their costs by shopping around for more competitive rates on home insurance, mortgages and gas and electricity supplies.
“It’s becoming more expensive to run a home,” says Robert O’May, home insurance manager at Sainsbury’s Bank. “[This] makes it all the more important for homeowners to shop around to make sure they are getting the very best deals available. This is not only for their mortgages and utility supplies but also their home insurance.
“We’ve produced a free guide available at www.sainsburysbank.co.uk/homeguide which looks at how homeowners may be able to reduce the cost of running their home.”
Mortgage repayments account for around 60% of the total annual cost of running a home, followed by the money spent on alterations and improvements, which accounts for over 12% with gas and electricity bills seeing the biggest percentage increases of almost 27% and 19% respectively.
With recent interest rate rises, and more likely to come, it makes sense for homeowners looking to make alterations or home improvements to shop around for cheap loan rates, which are still out there. Many homeowners go straight to their high street bank, which typically offer uncompetitive rates compared to those available on the internet.
